Info

In the tabs below you will find updates to country regulations in February and March 2023, many of which may impact employee benefits and/or costs of employment.

As always, if you have any questions or concerns, please reach out to Velocity Global through your normal process, and we will help you.

Americas

Barbados

Employer Contribution Increase

The maximum monthly contribution to the National Insurance fund and the Health Service fund has increased from BBD 4,880 to BBD 5,120 in 2023. Depending on the employee’s salary, this might lead to a slight increase in employer contributions.

 

Brazil

Statutory Benefit Changes

Day Care Reimbursement

The minimum mandatory day care reimbursement amount has increased from BRL 274.59 to BRL 290.98 per month.

Tax-Free Telework Expenses

Employee expenses for telephone, internet, energy, or other teleworking items are now tax-free, as long as they have sufficient proof.

 

Uruguay

Mandatory Compensation Increase

Effective January 1, 2023, all employee salaries have been increased by 3% per an official government decree.

Employer Contribution Increase

Effective February 1, 2023, the maximum monthly contribution to the statutory social security fund (BPS) has increased from UYU 16,137 to UYU 17,723.18. Depending on the employee’s salary, this might lead to a slight increase in employer contributions.

 

Asia - Pacific (APAC)

Australia

Employer Contribution Increase

The Payroll Tax contribution in Queensland has increased from 4.95% to 5.20% in 2023. This will lead to an increase in employer contributions for employees based in Queensland.

Payment in Lieu of Notice Period Update

In Australia, payment in lieu of notice is allowed. Please note that now, the payment in lieu of notice must be made to the employee before the termination date.

 

China

Medical Examinations in Shanghai

Requesting employees to submit their medical examinations is no longer legal in Shanghai city, unless the employer has very sufficient reasons.

 

India

Annual Leave Rollover Increase

Per mandatory legislation changes, up to 45 days of earned leave can be carried over to the following year.

 

Indonesia

Employer Contribution Increase

Effective March 2023, the maximum salary base used to calculate the employer contribution for the Jaminan Pension Program (BPJS JP) has increased from IDR 9,077,654 to IDR 9,559,600. Depending on an employee’s salary, this may lead to a slight increase in employer contributions.

 

Japan

Employer Contribution Increases

The employer portion of the Health insurance contribution has increased from 4.905% to 5.00% (effective 1 March 2023).

The employer portion of the Nursing Care Insurance contribution has increased from 0.82% to 0.91% (effective 1 March 2023).

 

Korea

Maximum Nontaxable Meal Allowance Increase

Effective January 2023, the maximum amount of the nontaxable meal allowance has increased from KRW 100,000 to KRW 200,000 per month. It is not mandatory to provide the maximum amount of KRW 200,000, but it is strongly advised.

 

Taiwan

New Timesheet Requirement

In order to comply with LSL Article 30 regarding timesheets for attendance records, employees must now complete and submit timesheets each month.

Medical Check-up Requirement under Velocity Global Taiwan

New Hires. Employees must do General Health Examinations as a pre-employment physical health check at the time of employment in accordance with Occupational Safety and Health Act, and the cost for the pre-employment health examinations shall be on the employees.

Existing Employees. Employers must conduct General Health Examinations for active employees, and the cost will be borne by the employers. The frequency is as follows in accordance with the Labor Protection Regulation:

• employees aged over 65 years old shall do the health check once a year
• employees aged over 40 and under 65 years old shall do the health check every 3 years
• employees aged under 40 years old shall do the health check every 5 years

 

Europe, Middle East, and Africa (EMEA)

Croatia

Amendment to Fixed-Term Contract Regulations

Fixed-term contracts are now limited to a maximum duration of three years (combined), as well as a maximum of three contracts with the same employee.

 

Ghana

Change to Operational Capabilities

We can no longer support clients with an entity in Ghana.

 

Iceland

Mandatory Compensation Increase

All employees that are part of a union are entitled to an annual compensation increase. Most employees in Iceland are part of a union.

The percentage or amount of the increase is dictated by the specific union, so this amount can vary. However, most employees are part of the same union and the rate increase for that union this year is 6.75% with a maximum of ISK 66,000.

Please note that this is not an automatic increase and it is generally used as a starting point for negotiations between the employee and employer. You and your supported employee should negotiate and reach an agreement.

 

Romania

Statutory Benefit Changes

Non-Taxable Income Threshold Introduced

The total value of non-taxable income, such as preventative medical subscriptions and gift vouchers has been capped at 33% of an employee’s monthly gross salary.

Non-Taxable Fitness Subscription Introduced

Effective February 1, 2023, employers can now offer their employees (as part of this 33% threshold referenced above) fitness subscriptions for practicing sports or doing physical education. These subscriptions are tax-free up to EUR 400 per year.

Caregiver Leave Introduced

Employees are now entitled to caregiver leave for a maximum of five working days per year. This leave is used for supporting a relative or person living in the same household who needs care due to a severe medical condition. This leave is 100% paid for by the employer.